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Room for Savings: Optimizing Hotel Spend - Carlson

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Seven steps to optimize hotel spend > Optimize the preferred hotel program<br />

Different hotel categories may also be selected <strong>for</strong><br />

use by different business units. Figure 65, <strong>for</strong><br />

example, shows a company that has designed its<br />

program so that lower-margin divisions use<br />

significantly fewer first-category or luxury hotels. In<br />

addition, the company has specific hotel directories<br />

with a higher number of lower-category properties<br />

<strong>for</strong> travelers staying in their own countries.<br />

Figure 65: One company has designed its program so that lower-margin divisions use<br />

significantly fewer first-class or luxury hotels<br />

<strong>Room</strong><br />

nights (%)<br />

Breakdown of hotel categories booked by business units<br />

Company G (banking & finance sector)<br />

100<br />

2 2 1<br />

15<br />

18<br />

28 24<br />

31 31 29<br />

80<br />

35<br />

47<br />

43 41<br />

48 50<br />

60<br />

45<br />

70<br />

60<br />

82<br />

34<br />

53<br />

34 34 37<br />

51<br />

40<br />

45<br />

40<br />

48 49<br />

40<br />

53<br />

21<br />

20 40 39 35 35 34<br />

18<br />

29 6<br />

25<br />

20 17<br />

12 12 10 10 9 9<br />

0<br />

Division a b c d e f g h i j k l m n o p<br />

Investment banking<br />

Retail banking<br />

Deluxe First Standard Serviced apartment<br />

Source: CWT Travel Management Institute<br />

73

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